2009 Enterprise Mobility Barometer

Transcription

1 2009 Enterprise Mobility Barometer State of Mobility in Manufacturing June 2009 Motorola EMS Business and Market Intelligence

2 Overview and Methodology Industry Challenges, Manufacturing Industry Challenges Inaccurate supply chain data Excess inventory & shipping delays Long equipment downtime

3 Overview and Methodology Enterprise Mobility Barometer Enterprise mobility has emerged as a top strategic initiative among leading global organizations. To better understand emerging trends in the Enterprise Mobility market, Motorola regularly conducts independent market research. Provides the industry s deepest view into the mobility mindset via direct feedback decision-makers, the mobile workforce and mobility channel entities. The Enterprise Mobility Barometer provides an understanding of the opportunities and challenges that mobility poses to enterprises.

4 Overview and Methodology Enterprise Mobility Barometer Research and market trends study conducted to better understand the Information Technology (IT) environment and business strategies concerning enterprise mobility systems and mobility applications. Key research areas of focus include: What are the major strategic mobility issues that concern IT/enterprise mobility decisionmakers? How various enterprises and mobile workers utilizing mobility solutions and what are the associated benefits? Which mobile technologies have penetrated the enterprise and what are the mobile workforce investments expectations for 2009? Which vertical industry segments and regions are adopting mobility solutions and why? What industries or segments have higher/lower mobility budgets? How are different segments of mobile workers using enterprise mobility solutions? Which applications are most deployed and which are poised for greater adoption?

5 Overview and Methodology Enterprise Mobility Barometer Enterprise Mobility Channel Mobility Decision- Maker Mobile Workforce

6 Overview and Methodology Enterprise Mobility Barometer 3,300+ online and phone-based survey of IT and telecom decision makers In-depth enterprise global B2B market research conducted in fourteen countries and spanning four continents Independent research study to measure attitudinal and behavioral decision making of IT executives in key industries: Education Energy & Natural Resources Government Healthcare Manufacturing (Discrete / Process Industries) Professional & Consumer Services Retail & Hospitality Telecom & Media Transportation & Logistics Wholesale Trade

7 Overview and Methodology Enterprise Mobility Barometer, Regional View Canada USA UK France Germany Russia China Mexico Spain Italy India Korea Taiwan Brazil In-depth enterprise global B2B market research spanning four continents and fourteen countries.

8 Overview and Methodology Enterprise Mobility Barometer, Respondents Q: Which of the following best describes your role in your company? Director or Department Head, non-it 16 % CIO, CTO, COO, (IT, technology, or operational executive level) 14 % Director or Department Head of IT, MIS or Hardware 14 % Manager or Supervisor in an IT department or group 13 % Manager or Supervisor, non-it 11 % CEO, CFO, CMO, (non-it executive level) 7 % Engineer, Design Engineer 5 % VP (other than operations) 5 % Operations Manager 4 % VP/SVP/Director of Operations 4 % Supply Chain Manager 2 % Technician /Technical Specialist 2 % Analyst/Senior Analyst 1 % In-depth enterprise global B2B market research spanning four continents and fourteen countries.focused on key decision-makers.

9 Overview and Methodology Key Findings 8 in 10 of Surveyed Manufacturers Report Increasing Reliance on Mobility. Key decisionmakers cited that mobility was more important for their organizations today than in This represents a nine percent increase from previous research, indicating that enterprise mobility applications continue to grow in importance as manufacturers look to boost operational efficiencies and increase productivity in the current macro-economic climate. Seven in Ten Manufacturers View Mobility as Key to Converting Downtime into Productive Time. Surveyed manufacturers identified that the mobilization of key applications enabled their organization to save or recover a daily average of 42 minutes per employee. Over One-Quarter Identified Inventory/Materials Management and Sales Force Applications as Drivers for Continued Mobility Investments. Key application investment on the shop floor was driven by inventory/materials management, and process-oriented applications such as WIP tracking, HMI/OI applications and quality control/quality assurance. Demand Continues to Rise for Sales Force and Field Service Applications. Nearly onethird of surveyed enterprises using field service applications citing an increase in business revenues/sales results and 25 percent reporting an increase in customer/partner satisfaction. Emerging Technologies (Video, VoWLAN, FMC, Asset Mgmnt. Solutions and Wireless Sensing) are increasingly seen as integral to the manufacturing mobility investment strategy.

10 Enterprise Mobility Viewpoints Technology Adoption, Manufacturing Q: How would you describe your company relative to how rapidly it adopts new important Information Technology (IT) and telecommunications (telecom) initiatives? 37% Early Adopters 41% Conservatives 11% Innovators 11% Laggards We like to be among the first to implement new technologies We see ourselves as an early adopter; however, we wait until we see the problems others have had We adopt new technologies when we are confident that they have become mainstream and widely accepted We are reluctant to go to new technologies and will generally do so only when necessary Surveyed manufacturing respondents adopt new technology when it is perceived safe lagging other more-innovative peer industries.

11 Enterprise Mobility Viewpoints Software Adoption, Manufacturing Q: Please indicate the deployment status for each of the following types of software in your company. Currently Using Currently Using / major upgrade First-time purchase next 12 mo. Security software 63% 15% New or Upgrades in 12-24mo. 8% 23% Database management software 57% 14% 12% 26% Human capital management software 57% 11% 12% 23% Enterprise resource planning (ERP) software 49% 22% 10% 32% Order management software 49% 19% 9% 28% Supply chain management (SCM) software 48% 20% 14% 34% Document and enterprise management 47% 19% 11% 30% Customer relationship mgmnt (CRM) software 42% 20% 14% 34% Business Intelligence (BI) reporting and analytics 34% 19% 14% 33% Virtualization software 25% 14% 14% 28% Strongest software activity is planned for ERP, SCM, CRM and BI solutions over the next twelve to twenty-four months.

12 Enterprise Mobility Viewpoints Importance of Mobility in Manufacturing Rises Q: Mobile and wireless technologies are more important to my organization today than they were last year Motorola Enterprise Mobility Barometer 44% 47% 2009 Motorola Enterprise Mobility Barometer 22% 27% 33% 2% 5% 5% 5% 10% Strongly Disagree Somewhat Disagree Neutral Somewhat Agree Strongly Agree 80% of decision-makers report an increasing importance of mobility a nine percent increase from previous research.

13 Enterprise Mobility Viewpoints Importance of Mobility in Manufacturing Rises Key Questions All Respondents (Manufacturing) Mobile and wireless technologies are more important to my company today than they were last year 80% Mobile and wireless technologies have allowed my company to convert downtime into productive time by allowing real-time access to corporate resources 70% My company has a competitive advantage by using mobile and wireless technologies My company has a set of clear guidelines for employees to utilize mobile and wireless technologies 55% 60% Over seven in ten surveyed decision makers view mobile and wireless solutions as key to converting downtime into productive time

14 Enterprise Mobility Viewpoints Mobility Benefits and Challenges Q: What are your organization s key benefits and challenges with regard to the deployment of mobile and wireless technologies? Key Mobility Benefits Key Mobility Challenges PRIORITY RANKING 1. Empower employees to be more productive 2. Reduce labor costs 3. Order fulfillment accuracy / Asset tracking accuracy 4. Improved customer satisfaction 5. Impact on revenue generation 1. Security Concerns/Risks 2. Cost of hardware / TCO 3. Cost of software, integration, service and support 4. Integrating mobile apps with infrastructure 5. Hardware quality

15 Enterprise Mobility Viewpoints Mobility Benefits, Manufacturing Faster / more efficient distribution of information in rapidly changing market. UK Manager Aerospace Manufacturer, employees quick connect with field reps; ability to quickly access the latest company info for PR, ordering, marketing and inter-connectivity between employees and management. US Director of IT Pharmaceutical Manufacturer, 2,000-5,000 employees increased connectivity and ability to make changes in midstream. US Operations Manager Automotive Manufacturer, employees

16 Enterprise Mobility Viewpoints Mobility Challenges, Manufacturing Q: Which of the following challenges has your company encountered in the use of mobile and wireless technologies? Security concerns/risk Cost of hardware 35% 38% Cost of software, integration, service, and support Difficulties integrating mobile apps/existing infrastructure Hardware quality (e.g. failures/damage) Interference/performance problems Difficulties in employee training and support Technology moving too rapidly/waiting for next gen Mobile device and policy management Difficulties in managing mobile employees 29% 25% 21% 19% 19% 18% 17% 16% No clear ROI/Does not meet ROI requirements Lack of apps requirements and third party apps 8% 11% Security concerns, cost of hardware and cost of software, integration, service, and support remain key cited challenges.

17 Enterprise Mobility Viewpoints Regional Mobility Challenges, Manufacturing Q: Which of the following challenges has your company encountered in the use of mobile and wireless technologies? All Manufacturing Americas Europe APAC Security concerns/risk 38 % 39 % 29 % 52 % Cost of hardware 35 % 34 % 39 % 45 % Cost of software, integration, service, and support 29 % 28 % 35 % 24 % Difficulties in integrating mobl apps with existing infrastructure 25 % 22 % 30 % 38 % Hardware quality (e.g. failures/damage) 21 % 20 % 20 % 31 % Interference/performance problems 19 % 19 % 17 % 31 % Difficulties in employee training and support 19 % 15 % 24 % 45 % Technology moving too rapidly/waiting for next generation 18 % 17 % 16 % 28 % Mobile device and policy management 17 % 20 % 9 % 10 % Difficulties in managing mobile employees 16 % 17 % 7 % 24 % No clear ROI /Does not meet ROI requirements 11 % 11 % 7 % 24 % Lack of application requirements and third party application(s) 8 % 9 % 5 % 17 % Security, cost of hardware and difficulties with integration and training are of greater concern in APAC; costs are of greater concern than security in Europe.

18 Enterprise Mobility Viewpoints Mobility Challenges, Manufacturing management of devices and security for the devices. Cost of replacing these things. U.S CIO/CTO Pharmaceutical Mfg, 5,000-10,000 employees Employee training people finding it hard to adapt to the new technologies. VP/Director of Operations T&L,3PL, employees workforce acceptance, re-engineering of back office. Director of IT, F & B Manufacturer, 2,000-5,000 Employees

19 Mobility Strategy and Decision-Making Manufacturing Mobility Strategy Q: Does your organization have a corporate-wide mobility strategy and how long has it been in place? 21% 22% 17% 16% 17% 8% Yes, strategy in place less than 6 months Yes, strategy in place 6 to 12 months Yes, strategy in place 13 to 24 months Yes, strategy in place longer than 24 months No strategy currently in place but will be developed within 12 months. We have no plans for a corporatewide mobility strategy. Nearly 4 in 10 surveyed manufacturing decision-makers either do not have a mobility strategies in place or do not plan to employ a corporate-wide strategy.

20 Mobility Strategy and Decision-Making Manufacturing Mobility Strategy Regional Q: Does your organization have a corporate-wide mobility strategy and how long has it been in place? < than 6 months 6 to 12 months 13 to 24 months > than 24 months None currently ; within 12 months. No plans for mobility strategy APAC 17% 10% 10% 17% 41% 40% Europe 9% 21% 17% 20% 16% 18% 67% Americas 8% 16% 17% 22% 23% 14% 63% Two-thirds of manufacturing respondents in Europe reported having a mobility strategy in place (67%), compared with 63% in Americas and 40% in APAC.

21 Mobility Strategy and Decision-Making Manufacturing Mobility Responsibility Q: Which of the following departments within your company have final purchase and decision-making authority for mobile and wireless purchasing? IT Management 65 % Management/Executive (e.g. President, CEO, etc.) 33 % Finance/Accounts/CFO 19 % Department/Line of Business Manager 19 % Engineering/Communications/Telecom 14 % Logistics/Supply Chain 10 % Operations/Facilities Manager 9 % Networking Manager/Consultant 7 % Expected End-Users of Mobile Technologies 6 % Sales 3 % 65% of respondents noted that IT management is driving mobility strategies in manufacturing...representing a sizeable YoY increase.

22 Mobility Strategy and Decision-Making Financial Justification of Investment Q: Does your company use any of the following methods to financially justify mobile and wireless technology investments within your company? All Manufacturing Respondents Americas Europe APAC Total Cost of Ownership (TCO) 34 % 30 % 49 % 41 % Return on Investment (ROI) 32 % 32 % 34 % 31 % Internal Rate of Return 21 % 20 % 17 % 41 % Level of Strategic Fit 19 % 19 % 16 % 28 % Compliance Requirement 16 % 13 % 24 % 17 % Level of Project Risk 12 % 10 % 13 % 34 % Net-Present-Values Payback Period or Break Even Point 12 % 9 % 20 % 24 % TCO and ROI are the top two justifications in Europe and the Americas. Among APAC respondents, IRR and level of project risk are on par with TCO.

23 Mobility Strategy and Decision-Making ROI Timeframe Q: What is the required timeframe for your company to realize their return on investment in mobile and wireless solutions? 37% 14% 17% 18% 5% 3% 6% 1% 1 month 5 months 6 months 10 months 11 months 15 months 16 months 20 months 21 months 24 months ROI in more than 24 months Do not expect to see an ROI but see other benefits Do not expect to see an ROI but required to deploy mobile and wireless technologies More than 50% of companies tracking ROI look for a return within 15 months of initial investments.

24 Mobile Applications and Investment Drivers Mobile Application Investment Drivers Q: Please indicate up to three applications that are highly important drivers behind your company s investment in mobile and wireless technologies (overall). Inventory/materials mgmt. Field sales applications Shipping & Receiving Voice/Telephony/Push-to-talk Warehouse Management Field service applications Asset tracking/management Dispatch/Schedule Customer-facing apps Records/Doc Management Maintenance/Repair/Diagnostics Facilities Management WIP Tracking Plant Ops /Op Interface/HMI 5% 5% 5% 4% 4% 6% 6% 11% 10% 10% 12% 16% 24% 31% Inventory management and sales force applications are equally important drivers for mobility in manufacturing enterprises.

25 Mobile Applications and Investment Drivers Mobile Application Drivers, Key Benefits Q: Please indicate the most important benefit realized by your organization due to the utilization of (any) key mobile and wireless applications. Key Benefits from Mobility Average over all environments in mfg All Respondents Manufacturing Americas Europe APAC Increased employee productivity/efficiency 44% 43% 50% 41% Increased order fulfillment accuracy 23% 23% 23% 21% Reduced labor costs via automated processes 22% 21% 23% 38% Increased inventory, shipment or asset accuracy 20% 21% 17% 17% Increased customer/partner satisfaction 19% 17% 18% 31% Increased business revenues/sales results 16% 17% 13% 7% Increased equipment availability 14% 15% 12% 7% Reduced out-of-stock items 9% 10% 6% 7% All regions see increased efficiency and productivity as the key benefit from mobile applications APAC sees greater impact on labor costs.

26 Mobile Applications and Investment Drivers Mobile Application Drivers, Key Benefits Q: Please indicate the most important benefit realized by your organization due to the utilization of these (specific) key mobile and wireless applications. Inventory/ materials management Field Sales applications Shipping/ Receiving Voice/ Telephony/ PPT Warehouse Management Field services Increased employee productivity/efficiency 9% 28% 9% 46% 2% 24% Increased order fulfillment accuracy 18% 10% 23% 4% 13% 10% Reduced labor costs via automated processes Increased inventory, shipment or asset accuracy 15% 8% 9% 12% 13% 17% 26% 4% 16% 2% 26% 5% Increased customer/partner satisfaction 3% 18% 7% 8% 9% 26% Increased business revenues/sales results 5% 22% 0% 14% 7% 7% Increased equipment availability 3% 3% 4% 4% 4% 5% Reduced out-of-stock items 10% 1% 7% 0% 4% 0%

27 Mobile Applications and Investment Drivers Mobile Applications In-building and field view Q: Please indicate up to three applications that are highly important drivers behind your company s investment in mobile and wireless technologies (within the specified environment). Manufacturing Shop Floor Field Sales & Service DC/Warehouse/T&L Inventory management 39% Sales force applications 48% Inventory management 41% Materials Management 27% Field service applications 17% Shipping & Receiving 37% Shipping & Receiving 20% Voice/Telephony/ Push-to-talk The impact of mobility applications is felt throughout a multitude of penetrate all environments in manufacturing companies. 15% Warehouse Management Warehouse Management 17% Customer-facing apps 8% Picking & Put-away 15% WIP Tracking 16% Dispatch/Schedule 8% Asset tracking/ management Plant Operations / HMI 14% Inventory management 7% Dispatch/Schedule 11% Promotions Management 13% Shipping & Receiving 7% Facilities Management 8% QC & QA 11% Time & Attendance 6% Asset tracking/ management 10% Work Order/ Service Automation & Optimization Records/Document Management 27% 14% 8% 6% Sales force applications 7%

28 Mobile Applications and Investment Drivers Key Benefits, Shop-Floor Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of (any) key mobile and wireless applications. Increased employee productivity/efficiency 39% Increased inventory, shipment or asset accuracy Increased order fulfillment accuracy Reduced labor costs via automated processes 23% 29% 27% Increased equipment availability Reduced out-of-stock items Increased business revenues/sales results Increased customer/partner satisfaction Reduced manual errors 16% 16% 15% 12% 11% Increased efficiency and productivity is the key benefit from mobile applications on the shop floor (39%), followed by increased asset accuracy (29%)

29 Mobile Applications and Investment Drivers Key Benefits, Shop-Floor Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of these key mobile and wireless applications. Manufacturing Shop Floor Inventory management Materials Management Shipping & Receiving Warehouse Management Increased inventory, shipment or asset accuracy 27 % 30 % 18 % 32 % Increased order fulfillment accuracy 20 % 0 % 18 % 16 % Reduced labor costs via automated processes 14 % 13 % 9 % 11 % Reduced out-of-stock items 11 % 13 % 5 % 11 % Increased employee productivity/efficiency 7 % 23 % 5 % 0 % Increased business revenues/sales results 9 % 7 % 0 % 11 % Increased customer/partner satisfaction 0 % 0 % 14 % 11 % Respondents citing the importance of inventory management (27%), materials management (30%) and warehouse management (32%) tie these applications to increased inventory/asset accuracy as a key benefit.

30 Mobile Applications and Investment Drivers Key Benefits, W/H and DC Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of (any) key mobile and wireless applications. Increased employee productivity/efficiency 32% Increased order fulfillment accuracy Increased inventory, shipment or asset accuracy 27% 27% Reduced labor costs via automated processes 23% Increased equipment availability Reduced manual errors Increased customer/partner satisfaction 12% 16% 15% Increase on-time delivery rate Reduced out-of-stock items 8% 8% Increased efficiency and productivity is the key benefit from mobile applications in the warehouse (32%), followed by increased asset and order fulfillment accuracy (27% each) and reduced labor costs (23%).

31 Mobile Applications and Investment Drivers Key Benefits, W/H and DC Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of these key mobile and wireless applications. Warehouse/Transportation & Logistics Inventory Management Shipping & Receiving Warehouse Management Increased inventory, shipment or asset accuracy 37 % 11 % 33 % Reduced labor costs via automated processes 17 % 11 % 17 % Increased order fulfillment accuracy 13 % 22 % 6 % Reduced manual errors 7 % 11 % 17 % Increased employee productivity/efficiency 13 % 15 % 6 % Increased customer/partner satisfaction 7 % 7 % 0 % Reduced out-of-stock items 7 % 7 % 0 % Increased equipment availability 0 % 0 % 11 % Respondents cited inventory management and warehouse management solutions as drivers for greater inventory accuracy and reduced labor costs.

32 Mobile Applications and Investment Drivers Key Benefits, Field Mobility Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of (any) key mobile and wireless applications. Increased employee productivity/efficiency 52% Increased customer/partner satisfaction Increased business revenues/sales results Increased order fulfillment accuracy Reduced labor costs via automated processes 29% 25% 21% 20% Increased equipment availability Increased inventory, shipment or asset accuracy 13% 11% Reduced out-of-stock items 7% Increased efficiency and productivity is the key benefit from mobile applications in the field (52%), followed by increased customer/partner satisfaction (29%)

33 Mobile Applications and Investment Drivers Key Benefits, Field Mobility Applications Q: Please indicate the most important benefit realized by your organization due to the utilization of these key mobile and wireless applications. Field Sales/Service Field Sales Applications Field Service Applications Increased employee productivity/efficiency 24 % 29 % Increased customer/partner satisfaction 19 % 25 % Increased business revenues/sales results 26 % 13 % Increased order fulfillment accuracy 10 % 8 % Reduced labor costs via automated processes 6 % 13 % Increased inventory, shipment or asset accuracy 3 % 8 % Increased equipment availability 3 % 4 % Companies citing the importance of Sales Force (24%) or Field Service applications (29%), tie these applications to increased employee productivity.

34 Mobile Applications and Investment Drivers Mfg. Mobility, Cited Productivity Gains Q: How much downtime (minutes per day) does the typical employee save or recover using a mobile application in a manufacturing environment? 32% 35% 18% 15% 25 Minutes or less Minutes Minutes 76 Minutes or More Manufacturing employees using key mobile applications are able to save or recover an average 42 minutes per day.

35 Thank You